Setting up a new business is both promising and challenging. You must test various strategies and tools to snowball and allocate resources wisely simultaneously. Outsourcing is one of those tools to boost your business and make your life easier.
Firstly, greetings to all new businesses and the brave ones who started them. You have chosen one of the hardest yet the most exciting path. In this way, you might need external support in the form of outsourcing to scale faster and cost-effectively. It would be best if you didn't consider it as a critical measure but as a smart strategy to focus on your core business processes and delegate all the rest.
As a matter of fact, outsourcing is no longer something you can not trust or control. On the contrary, the future is outsourcing. According to the 2021 Clutch Survey, 9 in 10 small businesses (90%) planned to outsource business functions in 2022, up from 80% in 2021. The critical reasons were:
- saving time;
- growing their company;
- and working with experts across various business functions.
Let's dive into the opportunities outsourcing provides for boosting your business and untying your hands.
Keep the focus on core business tasks
Trying to do everything yourself is one of the significant problems of every new business. It's not that you are not cool enough for that. It's quite the opposite — you are too cool to spend time on minor tasks when you could focus on the vital ones.
While you're meeting new clients or working on your product, the freelance content writer is writing the article, just like this one, for your blog. You stay focused on increasing your business efficiency and give all the rest to outsourcing. These can be any functions or services — from tech to public relations, you or your in-house team don't want or can't support.
The Clutch Survey says that 27% of small businesses primarily outsource to work more efficiently.
As soon as you outsource tasks or projects to external providers, you can free up your internal resources and employees to focus on core competencies, leading to increased efficiency and productivity.
Running a new business is like making a fire. You're in constant need of resources to keep it. Your expenses grow with the speed of dry branches burning. On the other hand, newly started companies usually have tight budgets.
Outsourcing may save you some firewood by lowering labor costs and increasing its profitability. You don't have to pay for employee benefits, training, or overhead costs. Some governments where you outsource workers can provide tax incentives. You can invest this money in more profitable areas of your business.
Access to specialized skills and expertise
People are everything in the business, especially in the new one. Finding the right people is the crucial problem and the reason for the sleepless nights of many entrepreneurs. Not only may great talents be expensive for the new business, but they are also hard to get and far harder to keep.
With outsourcing, you can reach out to a whole new world of bright minds and talents of specific specializations for a reasonable price and don't lose in quality simultaneously. Also, it allows you to gain access to knowledge or experience required for some tasks. You have the flexibility to hire not only individual freelancers but also to build complete tailor-made teams.
In their article, Forbes mentioned key destinations and their benefits for outsourcing employees, such as India, Colombia, and the Philippines. If you are more interested in web development, look in the direction of Eastern European countries and pay special attention to Ukraine, Poland, and Romania, the top three countries with the highest number of software development companies.
Gain customer satisfaction
Let's admit that your business exists until your customers need its product and until they are satisfied with its quality and service. That means you should provide a memorable and high-standard customer experience to keep clients returning.
You can step aside and entrust this task to the professional outsourced customer support staff under experienced management. Not only do you significantly reduce costs, but you can provide longer & more flexible work hours, even operating 24 hours a day throughout the week. Outsourcing custom service keeps your customers happy and loyal, so they recommend your product or service to their friends.
Is outsourcing for you?
No one knows the answer to this question better than you do. It ultimately depends on the specifics of your business and the goals you want to achieve within the outsourcing strategy.
Here are some tips on deciding whether you need outsourcing or not:
"Yes" to outsourcing:
- Lack of in-house resources: Your business won't grow without all the necessary resources and skilled personnel. So, outsourcing is the way out if you don't have one in-house.
- Need for specialized skills: With the help of outsourcing, you can reach out for any special skills or expertise you would never accomplish within your company or country.
- Tight budget: Outsourcing is a cost-effective way to hire and retain skilled talents, especially for new businesses.
- Team overload and inflexible deadlines: If you don't have time and free resources to perform a task in time — choose to outsource.
- Struggle to find the right talents and retain them: We are all now facing a global talent shortage, and hiring international talents is the solution to this problem.
- Growth retardation: With outsourcing, you can quickly scale up your development efforts and grow
- Blurred focus on core competencies: When you are in charge of every major and minor task and need help to focus on core competencies, then it's time to think about outsourcing.
"No" to outsourcing:
- Terms of confidentiality: It may be risky to outsource if your business is in a highly regulated industry or obtains some patents or know-how.
- Dependency on a single vendor: Reliance on a single vendor for development work can create a dependency that may be difficult to manage and may limit the company's ability to make changes or pivot as needed.
- Risk of vendor's bankruptcy: Outsourcing development work to a third-party vendor can also pose a risk of vendor's bankruptcy and impact the continuity of the project and its delivery.
Try to assess soberly the priorities you will accomplish in-house and then choose the areas for outsourcing. Best of luck!
This material was prepared for you by the StartupSoft remote team, the staff augmentation company from Ukraine.